WUHAN, China, Dec. 7, 2018 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that its board of directors approved a share repurchase program of up to $5 million of its outstanding common shares periodically over the next 12 months. Repurchases will be made in open market transactions, at prevailing market prices not to exceed $4.00 per share, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions. Members of the management team may make additional share purchases in addition to the Company repurchase.
Mr. Hanlin Chen, Chairman of China Automotive Systems, commented, "We do not believe that our current stock price reflects our leadership position in the Chinese automotive power steering industry. Despite the challenging automotive market in China today, we continue to produce advanced hydraulic steering products and we have enhanced our position for the sale of electric power steering systems through our new joint venture with KYB (China) Investment Co., Ltd. ("KYB"), a wholly owned company of Japan KYB Co., Ltd. In addition, our growing sales to
tier-1 automobile manufacturers in the North and South American automotive markets provides a foundation for further future growth."
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "The Chinese auto and auto parts sectors remain as key segments to China's industrial base providing the means for manufacturing, logistics, and transportation. We continue to invest in new products to gain market share."
Mr. Jie Li, chief financial officer of CAAS, commented, "Our stock's market capitalization is below our cash, cash equivalents and short-term investments, our liquid current assets, book value, and global peers' valuations based on a number of financial measurements. Our decision to repurchase share is a result of our strong balance sheet built up over a number of years and highlights our commitment to creating shareholder value."
In the first nine months of 2018, CAAS recorded revenue of $371.9 million with net income attributable to parent company's common shareholders of $5.5 million. As of September 30, 2018, CAAS' total cash and cash equivalents, pledged cash deposits and short-term investments were $144.1 million, total accounts receivable including notes receivable were $249.6 million, accounts payable were $196.6 million and short-term loans were $70.9 million. Total stockholders' equity was $309.5 million as of September 30, 2018. Net cash flow from operating activities was $9.0 million in the first nine months of 2018.
About China Automotive Systems, Inc.
Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 6 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Chrysler Group LLC in North America. For more information, please visit: http://www.caasauto.com.
This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 29, 2018, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
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Chief Financial Officer
China Automotive Systems, Inc.
SOURCE China Automotive Systems, Inc.